What are the FHA Loan Limits in Nashville TN
FHA loans offer a great opportunity to open the door to home ownership to many home buyers that would likely would not be able to qualify for a loan for the purchase of their new home.
FHA loans in Nashville TN have a much more relaxed and forgiving approach to underwriting in regards to:
-Credit: Whith credit scorea allowed as low as a 620, homebuyers with past credit struggles such as bankruptcy and foreclosures can qualify in as little as 1 year after filing chapter 13, 2 years after discharge of chapter 7 and 3 years after a foreclosure.
-Debt to Income: While conventional guidelines call for a 36% debt ratio, FHA allows for 43 per cent and in some cases up to 50 per cent
-Down payment: Besides having a lower down payment requirement Nashville FHA buyers can recieve gift funds for all of their downpayment. Unlike conventional loan programs, there is no requirment for buyer's to use their own funds.
While the underwriting rules are very forgiving and do allow for many to qualify, FHA does limit the amount you can borrow. These limits will vary depending on where the new home is. However, in Tennessee there are only two different limits. The Nashville Metro area has one limit, and the rest of the state has another.
The Nashsville Metro area which includes, Cheatham County , Davidson County, Dickson County, Hickman County, Macon County, Robertson County, Rutherford County, Smidt County, Sumner County, Trousdale County, and Williamson County have a higher FHA loan limits than the rest of the state. While all other areas of Tennessee have FHA loan limit of $271,050 the FHA Loan Limits in Nashville TN is $425,500.
I specialize in government loans, Call me today at 866.435.6553 and let me answer your FHA questions, whether you are wanting to buy a new home in the Nashville area or other parts of Tennessee, I will happy to help you.